What do these celebrities have in common?
Nicholas Cage
Billy Joel
Meatloaf
MC Hammer
Marvin Gaye
Bernie Kosar
Billy Joel
Meatloaf
MC Hammer
Marvin Gaye
Bernie Kosar
The answer is they all went bankrupt. Each of these individuals earned millions of dollars but ended up broke. Why is that? Certainly many were victims of bad management advice while others got involved in investments that went bad. And still others had money stolen by dishonest lawyers and accountants. However, for everyone who suffered a fate like this, there are thousands who got there simply as a result of overspending.
Spending is the archenemy to freedom. People who cannot control their spending end up living as slaves. Their entire existence becomes a continual battle in earning enough to pay off the bills. Sadly, this is true whether one is bringing in millions or thousands. The end result is the same.
Have you ever thought about celebrity lifestyle? Leaving aside the fame, what makes it so attractive. To me, it is the freedom they have to do what they want. A person in this category does not have to get up and go to 'work. Instead, they choose the projects they opt to be involved with. This is how they generate income. Of course, it is a sound philosophy as long as the spending is kept in control. The second the spending starts to exceed the revenue, one starts on the path to bankruptcy.
The Hollywood crowd is not known for their minimalist lifestyle. Therefore, they tend to spend lavishly on houses, cars, and other exotic items. While their careers are successful, making the payments is commonly not a problem. However, more than a few suffered a reversal of fortunes where their careers dried up. At these times, the financial obligations can overwhelm even the most famous of people.
How does this all relate to your life? The philosophy is identical even though the numbers will change. Your path towards slavery is paved whenever you allow your spending to get excessive. Whether one is upside down to the tune of $500 a month or $5,000, the simple truth is that one's bills cannot be paid. In both instances the income was smashed by the spending.
So, how do we attain freedom? To me the best approach is to start by decreasing the expenses as much as possible. If you are able to reduce your monthly outlay by 50%, then you only need half as much money to live on. Therefore, if all other aspects remain the same, you will have excess every month. Invest the difference in an asset that yields a decent annual return and you will find that you are getting further ahead. This is the secret to building wealth. However, none of it is possible without first controlling one's spending.
We have all heard of the high income, high expense people. These are those individuals who earn a substantial salary but have little to show for it. I personally know people who cannot afford to retire even though their income is in excess of $100,000 a year. Spending put them in a hole that it will take years to get out of. Of course, habits do not change on their own so unless something is done, these people continue along the same path.
Understanding this concept will allow you the chance to enter into the 1% who live in freedom. Most of society operates as slaves. By controlling your need to buy, you will be able to establish a life based upon freedom principles. This is what the high income earners who do not find themselves enslaved do. Yet, contrary to popular opinion, one does not need to have tremendous cash flow to attain this state. Reducing your financial obligations to the bare minimums will lead to freedom.
The minimalist mindset is a terrific asset to have in this quest. When you look around you at all you have, can you tell me how much of it you really need? Most people have far more than they ever could consume or utilize. Truthfully, how many televisions does a person need? Do you need to continually get a new vehicle? Is a monthly cable bill mandatory for your existence? Can you get by on less than a 2500 square foot house? If you answered yes to these questions then I will say that you are perfectly suited to live as a slave.
It is easiest to control one's spending by purchasing only what is needed while minimizing the dollars spent on treats. Most people have too much 'stuff' in their homes. Getting rid of things through a decluttering process is an excellent way to begin the minimization path. However, a far better way is to never purchase the items to begin with. People literally enslave themselves with every financial decision they make. Sadly, it seems to happen $20 at a time.
Controlled spending is your path to freedom. Money is something that we simply need to get by in this culture. It is the medium of exchange that allows us to acquire the goods and services that are needed. However, excessive spending is the fundamental cause of many of the problems we face in the world today. Look at the various economic conditions of most governments, businesses, and individuals and you will see a spending problem. Countries are quickly becoming enslaved by the debt they are amassing. The rules apply no matter what level one is referring to. Spend to much and you will be a slave. It is that simple. Spending is the biggest freedom buster there is.
Spending is the archenemy to freedom. People who cannot control their spending end up living as slaves. Their entire existence becomes a continual battle in earning enough to pay off the bills. Sadly, this is true whether one is bringing in millions or thousands. The end result is the same.
Have you ever thought about celebrity lifestyle? Leaving aside the fame, what makes it so attractive. To me, it is the freedom they have to do what they want. A person in this category does not have to get up and go to 'work. Instead, they choose the projects they opt to be involved with. This is how they generate income. Of course, it is a sound philosophy as long as the spending is kept in control. The second the spending starts to exceed the revenue, one starts on the path to bankruptcy.
The Hollywood crowd is not known for their minimalist lifestyle. Therefore, they tend to spend lavishly on houses, cars, and other exotic items. While their careers are successful, making the payments is commonly not a problem. However, more than a few suffered a reversal of fortunes where their careers dried up. At these times, the financial obligations can overwhelm even the most famous of people.
How does this all relate to your life? The philosophy is identical even though the numbers will change. Your path towards slavery is paved whenever you allow your spending to get excessive. Whether one is upside down to the tune of $500 a month or $5,000, the simple truth is that one's bills cannot be paid. In both instances the income was smashed by the spending.
So, how do we attain freedom? To me the best approach is to start by decreasing the expenses as much as possible. If you are able to reduce your monthly outlay by 50%, then you only need half as much money to live on. Therefore, if all other aspects remain the same, you will have excess every month. Invest the difference in an asset that yields a decent annual return and you will find that you are getting further ahead. This is the secret to building wealth. However, none of it is possible without first controlling one's spending.
We have all heard of the high income, high expense people. These are those individuals who earn a substantial salary but have little to show for it. I personally know people who cannot afford to retire even though their income is in excess of $100,000 a year. Spending put them in a hole that it will take years to get out of. Of course, habits do not change on their own so unless something is done, these people continue along the same path.
Understanding this concept will allow you the chance to enter into the 1% who live in freedom. Most of society operates as slaves. By controlling your need to buy, you will be able to establish a life based upon freedom principles. This is what the high income earners who do not find themselves enslaved do. Yet, contrary to popular opinion, one does not need to have tremendous cash flow to attain this state. Reducing your financial obligations to the bare minimums will lead to freedom.
The minimalist mindset is a terrific asset to have in this quest. When you look around you at all you have, can you tell me how much of it you really need? Most people have far more than they ever could consume or utilize. Truthfully, how many televisions does a person need? Do you need to continually get a new vehicle? Is a monthly cable bill mandatory for your existence? Can you get by on less than a 2500 square foot house? If you answered yes to these questions then I will say that you are perfectly suited to live as a slave.
It is easiest to control one's spending by purchasing only what is needed while minimizing the dollars spent on treats. Most people have too much 'stuff' in their homes. Getting rid of things through a decluttering process is an excellent way to begin the minimization path. However, a far better way is to never purchase the items to begin with. People literally enslave themselves with every financial decision they make. Sadly, it seems to happen $20 at a time.
Controlled spending is your path to freedom. Money is something that we simply need to get by in this culture. It is the medium of exchange that allows us to acquire the goods and services that are needed. However, excessive spending is the fundamental cause of many of the problems we face in the world today. Look at the various economic conditions of most governments, businesses, and individuals and you will see a spending problem. Countries are quickly becoming enslaved by the debt they are amassing. The rules apply no matter what level one is referring to. Spend to much and you will be a slave. It is that simple. Spending is the biggest freedom buster there is.
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